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Dear all,
I am looking for a site and I heard from one of the real estate agent that the site owner want to have half the amount in cash (black money). Isn't it illegal to give money in cash that too when it is around 20-25 lakhs? And if the site is purchased from a bank loan they I must be answerable to the money paid in cash. I really want to buy this particular site and the owner is insisting on cash. Could anybody please shed some light on this?
Regards
SP

There are very few folks in Bengaluru (and maybe in India), that sell properties with complete white money. You just have to either compromise and pay the cash component, or just let go of the site. I feel if everyone sticks their ground and refuses to pay in black, then this practice will stop.

if insisting black money- then negotiate price of site , since he is avoiding tax to be paid on white money

sp24 wrote:Dear all,
I am looking for a site and I heard from one of the real estate agent that the site owner want to have half the amount in cash (black money). Isn't it illegal to give money in cash that too when it is around 20-25 lakhs? And if the site is purchased from a bank loan they I must be answerable to the money paid in cash. I really want to buy this particular site and the owner is insisting on cash. Could anybody please shed some light on this?
Regards
SP

I think It isn't a black transaction from buyer to seller if buyer is giving cash to seller and if buyer has acquired that cash by legitimate means and payed all taxes. The Seller is what will be in trouble by IT department rather than buyer.

There are many buyers who got liquid cash by illegal means from which they want to buy a property, property will be registered on guidance value and rest of the amount will be payed by buyer to seller in cash. This definitely becomes a black transaction.